Sunstone Hotel Investors, Inc. · NYSE:SHO
Sunstone Hotel Investors — Investor Presentation (March 2013)
15 slides from Sunstone Hotel Investors's investor presentation, March 2013
Slide 1: Company Presentation
SUNSTONE HOTEL INVESTORS, INC Company Presentation March 2013
Slide 2: Forward-Looking Statements
SUNSTONE HOTEL INVESTORS, INC Forward-Looking Statements This presentation contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some
Slide 3: Company Profile
SUNSTONE HOTEL INVESTORS, INC Company Profile Sunstone is a leading hotel investment company with an enterprise value of approximately $3 billion. Pro Forma Capital Structure / Valuation Metrics Sunstone Portfolio Metrics Shares 162.1 M Hotels 26 Recent Stock Price $11.29 Rooms 11,632 Equity Market
Slide 4: Sunstone Investment Thesis
SUNSTONE HOTEL INVESTORS, INC Sunstone Investment Thesis New team. New strategy. Superior returns. High-Quality Portfolio of 26 institutional-quality, upper upscale hotels located in the top U.S. markets. New Team comprised of top industry professionals. New Strategy aimed at creating signific
Slide 5: High-Quality Portfolio
SUNSTONE HOTEL INVESTORS, INC High-Quality Portfolio We own a geographically diverse portfolio located primarily in coastal urban markets. 2012 Pro Forma Total EBITDA by Region (number of hotels in parenthesis) Mid-West (3) Northeast (9) 9% 43% • Chicago 9% (3) • DC/Baltimore 14% (3) • NYC 17% (3) •
Slide 6: Proactive Portfolio Management
SUNSTONE HOTEL INVESTORS, INC Proactive Portfolio Management We have executed on our plan to improve portfolio quality and scale while methodically deleveraging our balance sheet. 2012 • Acquired two high quality, unlevered hotels • Sold four low RevPAR, highly-levered hotels • Invested $109 million
Slide 7: Intensive Asset Management - Delivering Results
SUNSTONE HOTEL INVESTORS, INC Intensive Asset Management - Delivering Results Continuous focus on maximizing the value of our real estate. Asset management initiatives are driving operations growth • 2012 RevPAR growth of 5.2%-5.4% • Year-to-date (as of Q3 2012) comparable margin expansion of 120
Slide 8: Intensive Asset Management - Delivering Results
SUNSTONE HOTEL INVESTORS, INC Intensive Asset Management - Delivering Results We invested over $100 million into the portfolio in 2012 and are targeting approximately $100 million of capital investment in 2013. RevPAR growth at renovated hotels has been strong. Doubletree Times Square Renaissance We
Slide 9: Disciplined External Growth
SUNSTONE HOTEL INVESTORS, INC Disciplined External Growth During 2012 we built a concentration of high-quality hotels in Chicago’s Magnificent Mile District Hyatt Chicago – 417 keys Acquisition funded by issuing The Blackstone Group $58.4 million of common stock at $10.71 and with $30 million of
Slide 10: Disciplined External Growth
SUNSTONE HOTEL INVESTORS, INC Disciplined External Growth During 2012 we built a concentration of high-quality hotels in Chicago’s Magnificent Mile District Embassy Suites Hyatt Chicago Chicago Magnificent Mile Hilton Garden Inn Magnificent Mile COMPANY PRESENTATION • PAGE 10
Slide 11: 2013 Dispositions - Rochester Portfolio
SUNSTONE HOTEL INVESTORS, INC 2013 Dispositions - Rochester Portfolio In January 2013, we completed the sale of a four-hotel, 1,222-room portfolio and commercial laundry facility in Rochester, Minnesota for a gross sale price of $230 million. • Four-hotel portfolio (based on allocated price) sold fo
Slide 12: Capital Improvements
SUNSTONE HOTEL INVESTORS, INC Capital Improvements During 2012 we invested more than $100 million into our existing portfolio Realizing strong returns from targeted capital investments Renaissance Long Beach Courtyard LAX Hyatt Newport Beach Renaissance Orlando Marriott Philadelphia West Renaissance
Slide 13: Measured Balance Sheet Improvement
SUNSTONE HOTEL INVESTORS, INC Measured Balance Sheet Improvement We have a well staggered debt maturity profile consisting of low-rated, single-asset secured mortgage debt. In 2012 and January 2013, we reduced our debt balance by approximately $213 million. • No debt maturities through April 2015. •
Slide 14: Sunstone Investment Thesis
SUNSTONE HOTEL INVESTORS, INC Sunstone Investment Thesis New team. New strategy. Superior returns. High-Quality Portfolio of 26 institutional-quality, upper upscale hotels located in the top U.S. markets. New Team comprised of top industry professionals. New Strategy aimed at creating signific
Slide 15: Company Presentation
SUNSTONE HOTEL INVESTORS, INC Company Presentation March 2013
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